Infant milk formula is used as a complete or partial substitute for breast milk. The milk powder is infused with nutrients that aid the overall development of a baby.

Modern farming techniques utilize a large amount of chemical fertilizers and pesticides to achieve a good yield. Presence of such chemicals in food causes many short term and long term consequences on human health. For instance, the preservative nitrite is converted into carcinogenic compound nitrosamines by the human body. Demand for organic techniques used for food farming is rising significantly since chemicals such as potassium chloride, heavy metals, and ammonium nitrate are not used in this technique. In addition, the demand for organic baby food is on the rise on account of rising awareness about harmful chemicals and the adverse effects they pose on infants.

Online retailing for organic baby food holds huge potential for growth in the market. Factors such as increasing popularity of internet services, advancements in services such as 4G and 5G along with smartphones in emerging economies of Asia Pacific region (mainly India and China) are driving online sales for organic baby food products. More consumers are opting for online purchase of baby food products owing to its ease and hassle less nature of online services. Furthermore, rising emergence of e-commerce companies and innovative strategies adopted by major players such as channel expansion will fuel growth of online segment in organic baby food market.

Asia Pacific is the fastest growing market for organic baby food owing to its large population and high birth rates, especially in countries such as India and China. According to World Health Organization (WHO), Asia Pacific had around 311 million of infant population (nearly half of world’s infants) in 2016. Major market players are looking for opportunities to expand their business in Asia Pacific region owing to favorable condition it offers for growth of organic baby food market.

North America and Europe dominated the organic baby food market in 2016, with North America holding the prominent position. The organic baby food market in North America was valued at US$ 2,092.9 Mn in 2016. Stringent government regulations pertaining to the quality of baby food coupled with high consumer awareness regarding the harmful effects of chemicals on infant development has boosted the growth of the organic baby food market in this region. According to a report published by the Food and Drug Administration (FDA) of United States, 6 out of 10 U.S. citizens believe that organic food is better for their health. Stringent regulatory scenario in the U.S. ensures that the quality of the product is at par with the required standards. According to Title 21 of the Code of Federal Regulations (CFR), “the manufacture or distribution of infant formula that will be introduced to the interstate commerce in the United States must comply with the requirements of the Federal Food, Drug, and Cosmetic Act (the act), 21 USC 321 et seq., and FDA's regulations implementing the act”. These factors are highly responsible for the growth of the organic baby food market in North America.

The organic baby food market in Latin America is highly consolidated with companies such as The Kraft Heinz Company and Nestle S.A. possessing dominant market shares. Demand for organic baby food is projected to increase significantly due to the transition in lifestyle of consumers in terms of their feeding habits and rising purchasing power of the consumers, among others. The major players are projected to retain their dominance in this region due to the popularity of their products and the trust gained through the same. However, local players find it hard to secure a favorable position mainly due to lack of investments as a result of the sluggish economic growth in the region. However, as major countries such as Brazil, Argentina, and Colombia are expected to achieve economic and political stability in near future, the market scenario will, in turn, change accordingly.

Consumers residing in countries such as the U.A.E., Qatar, and Saudi Arabia exhibit a high purchasing power due to which they can afford premium quality products such as organic baby food. Further, the demand for the same is also rising on account of increasing awareness on the need for good health and wellbeing. Further, consumers in these countries are aware of the repercussions of inadequate infant nutrition as well.

The global organic baby food market was valued at US$ 6,516.0 Mn in 2016 and is expected to expand at a CAGR of 10.8%, in terms of revenue, during 2017 – 2025.

Figure 1. Global Organic Baby Food Market Share (2016), By Region

Source: Coherent Market Insights 2017

North America dominated the global organic baby food market in 2016 and is expected to retain its dominance throughout the forecast period. However, Asia Pacific is expected to project the fastest growth during the forecast period. Rapid adoption of organic baby food products among the consumers is one of the prime factors fuelling the growth of the market in Asia Pacific.

Organic baby foods are manufactured using the highest-quality manufacturing techniques to maintain good quality and prevent traces of chemicals in these products. Advantages of consuming organic food include less exposure to chemical residues, more vitamin intake, and fair presence of various minerals and omega-3 fatty acids. In addition, fresh and nutritious food will help boost the overall development of the infant, resulting in a strong and robust immune system. A major driver for the organic baby food market is high birth rates in the developing regions. According to the UN, there were 675 million infants in 2016, which defines a massive scope for this market. Relaxed regulatory scenario regarding the quality check of baby food products in the emerging economies is one of the major factors hindering the growth of the organic baby food market at present. Further, increasing inclination toward homemade food in countries such as India is also a major market restraint.

Market Dynamics

A population boom has been observed in the two largest populated countries in the world — India and China. Asia Pacific was host to around half of the world’s infant population i.e., 311 million, in 2016. Further, according to the UN, the total population of Africa is expected to reach 1.3 billion by 2050. Due to the high demand for organic baby food products, the market is slated to grow at a very fast pace since the political and economic turmoil in the region is expected to decline by the end of the forecast period.

North America and Europe are the dominant regions for organic baby food. High purchasing power of the consumers coupled with rising awareness about infant nutrition is a prominent factor bolstering the demand for organic baby food market in these regions.

Market Taxonomy

The organic baby food market, which holds a significant market share in the overall baby food market, is segmented on the basis of product type and distribution channel. Online channel is expected to witness a rapid growth during the forecast period on account of rising consumer inclination toward such mode of purchase. Supermarkets and Hypermarkets are the leading distribution channels, since consumers prefer a tactile experience before purchasing the product.

Key features of the study:

This report provides an in-depth analysis of organic baby food and provides market size (US$ Million) and Cumulative Annual Growth Rate (CAGR %) for the forecast period (2017 – 2025), considering 2016 as the base year

It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market

This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by the leading players

It profiles leading players in the global organic baby food market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans

Insights from this report would allow marketers and the management authorities of the companies to make informed decision regarding their future product launch, technology up-gradation, market expansion and marketing tactics

The organic baby food market report caters to various stakeholders in this industry including investors, suppliers, organic baby food manufacturers, distributors, new entrants, and financial analysts

Stakeholders would have ease in decision making through the various strategy matrices used in analyzing the organic baby food market

Detailed Segmentation:

Global Organic Baby Food Market t, By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

Global Organic Baby Food Market, By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Global Organic Baby Food Market, By Geography:

North America

U.S.

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Canada

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Europe

U.K.

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Germany

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Italy

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

France

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Spain

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Russia

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Rest of Europe

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Asia Pacific

China

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

India

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Japan

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

ASEAN

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Australia

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

South Korea

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Rest of Asia Pacific

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Latin America

Brazil

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Argentina

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Rest of Latin America

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Middle East

GCC

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Israel

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Rest of Middle East

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Africa

Northern Africa

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Central Africa

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

South Africa

By Product Type:

Infant Milk Formula

Starting MF

Follow On MF

Toddlers MF

Special MF

Ready-to-Eat Baby Food

Powder

Liquid

Others

By Distribution Channel:

Hypermarkets

Supermarkets

Specialty Stores

Convenience Stores

Online

Company Profiles

Abbott Laboratories*

Company Overview

Product Portfolio

Financial Performance

Key Strategies

Recent Developments

Future Plans

Groupe Danone

Nestle S.A.

Kraft Heinz Company

Hero Group

Amara Organics

Baby Gourmet

Bellamy’s Australia

Little Duck Organics

“*” marked represents similar segmentation in other categories in the respective section.

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Macro-economic indicators

Environmental indicators

Socio-political indicators

Technology indicators

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